Bigstone Montney-centered Delphi Energy Corp. (ticker: DEE) is hoping to grow its production to approximately 22,000 BOEPD by 2019. During the first quarter of 2017, Delphi produced 8,198 BOEPD, 40% of which was condensate or natural gas liquids.
Delphi also succeeded in increasing condensate and liquids yields from its rich-gas sources—up to 130 barrels per million cubic feet in Q1, 2017 from 99 barrels per million cubic feet in Q4, 2016.
Source: Delphi Energy Corp.
Steps to build production
During Q1, the company drilled four gross (2.6 net) wells and brought another four gross (2.5 net) wells to production within its Bigstone Montney asset. Delphi intends to continue its development of the Montney with two active drilling rigs, as of the end of Q1. The company also intends to complete five gross (3.2 net) wells following Q1.
In line with its development plan, the company invested $30.3 million in its capital development. Approximately 78% of the total was spent on drilling, completing and equipping the four gross drilled wells mentioned previously. In order to keep pace with its growing production, Delphi began the expansion of its Montney dehydration and compression capacity in the East and South portions of the Bigstone asset.
Delphi’s land and acquisition
Delphi acquired 22.5 sections, equivalent to 10,530 acres, in May, 2017. The acquisition increased Delphi’s Montney footprint up to 165.5 gross (109.6 net) acres, equivalent to 76,130 gross (50,416 net) acres. The company has not yet announced the terms of the acquisition.
The company reported upwards of 400 potential extended reach horizontal well locations. Delphi expects that, if it were to run a three rig program, with 21 wells per year, it would have approximately 19 years of inventory remaining in its current assets.
Delphi Energy Corp. is presenting at EnerCom’s The Oil & Gas Conference® 22
Delphi will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
